Data Centers


Data centers are the engines of the digital economy—powering everything from cloud computing to AI. As demand surges, so do the legal complexities. Dykema helps clients navigate every contract, regulation, and risk that comes with building, contracting, and operating critical infrastructure.

With increasing demands for uptime, energy efficiency, and regulatory compliance, data centers—and the companies that build, operate, or invest in them—face a unique set of legal challenges that span multiple disciplines. Our attorneys represent data center operators, developers, investors, and technology partners in navigating the full lifecycle of digital infrastructure projects. From securing power and land to managing construction contracts, vendor relationships, and cybersecurity risks, we bring a multidisciplinary approach grounded in industry insight and regulatory experience. Whether our clients are launching a new facility, expanding capacity, or negotiating complex service agreements, we deliver practical, business-focused legal solutions tailored to the evolving demands of the data center ecosystem.

We assist clients in identifying and securing optimal locations for data center development, providing end-to-end legal support for site acquisition, leasing, and development. Our services include negotiating land purchases, long-term ground leases, and build-to-suit arrangements, as well as advising on zoning, permitting, and environmental compliance. We also help clients structure and negotiate leases for colocation space and customer occupancy, including hybrid agreements that balance lease, license, and access rights—often with financing and UCC perfection in mind. Whether developing a new facility or expanding within an existing one, we ensure that every real estate transaction aligns with operational goals, regulatory requirements, and long-term scalability.

Reliable, scalable, and cost-effective energy is essential to data center operations. We provide legal guidance on structuring and negotiating power purchase agreements (PPAs), securing interconnection and transmission rights, and managing relationships with utilities and independent system operators. Our attorneys have deep experience navigating regulatory compliance with FERC, PUCT, ERCOT, MISO, MPSC, and other governing bodies. We also advise on renewable energy sourcing, backup power arrangements, and energy infrastructure planning to help clients meet sustainability goals and ensure uninterrupted service.

Our firm provides strategic legal counsel to support the business operations and growth of data center enterprises. We assist clients in structuring joint ventures, partnerships, and special purpose entities that align with their investment and operational goals. Whether navigating mergers, acquisitions, or asset purchases, our attorneys ensure transactions are executed efficiently and with minimal risk. We also draft and negotiate a wide range of commercial agreements—including vendor contracts, colocation arrangements, and service-level agreements—tailored to the unique demands of data center operations. Our team works closely with private equity firms, infrastructure investors, and technology partners to support scalable, compliant, and forward-looking business models.

Data centers are custodians of vast amounts of sensitive and regulated information. We help clients navigate the complex landscape of data privacy and cybersecurity law, including compliance with U.S. and international regulations such as the GDPR, CCPA, and HIPAA. Our services include drafting and negotiating data processing agreements, developing incident response plans, and advising on breach notification obligations. We also conduct risk assessments and cybersecurity audits to help clients proactively manage threats and maintain trust with customers and partners.

We help clients maximize the financial viability of their data center investments through strategic tax planning and incentive negotiation. Our attorneys work with local and state governments to secure tax abatements, PILOT agreements, and infrastructure incentives. We advise on structuring transactions to optimize eligibility for energy and technology-related tax credits and exemptions, including sales and use tax relief for equipment and construction materials. Our team ensures compliance with incentive program requirements while unlocking long-term value for our clients.

From groundbreaking to commissioning, we support every phase of data center construction. Our team drafts and negotiates engineering, procurement, and construction (EPC) contracts, design-build agreements, and construction management contracts tailored to the unique demands of mission-critical infrastructure. We advise on procurement strategies, contractor risk allocation, and insurance coverage, and we help clients manage disputes, delays, and change orders. Our focus is on delivering legally sound, on-time, and on-budget projects that meet the highest standards of performance and reliability.

When disputes arise, our litigation team is prepared to protect your interests with deep industry knowledge and strategic advocacy. We represent clients in a wide range of disputes, including construction delays and defects, breach of contract claims, power supply interruptions, land use challenges, and cybersecurity incidents. Our attorneys are experienced in navigating complex, high-stakes litigation involving multiple stakeholders, including utilities, contractors, municipalities, and technology vendors. We also handle regulatory enforcement actions and represent clients before administrative bodies and in arbitration proceedings. Whether resolving disputes through negotiation or litigation, we focus on minimizing disruption and preserving long-term business value.

Latest News and Insights

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